Supreme Court Upholds Liability of Steamer Company as Common Carrier for Feeder Service Goods Loss. Feeder Boat Service on Tributary Held Covered by Public Profession of Common Carrier Under Section 2 of Carriers Act, 1865 Despite Absence of Fixed Rates and Profit.

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Case Note & Summary

The dispute arose out of a claim for compensation for the loss of 120 chests of tea entrusted by the respondent, Shyam Sundar Tea Co., Ltd., to the appellant steamer companies, which were joint owners of a steamer service between Dibrugarh and Calcutta. The main service operated along the Brahmaputra River; the Desang River was a tributary meeting the main stream at Desangmukh Ghat. On September 10, 1946, the respondent delivered the tea chests at Dillibari Ghat, located about 70 miles upstream on the Desang, for carriage by boats to Desangmukh Ghat and then by steamers to Kidderpore, Calcutta. The boat carrying the tea sank, and the chests were lost. The respondent claimed Rs. 1,6,224-12-0 as compensation, alleging both negligence and strict liability of the appellants as common carriers. The appellants denied delivery, negligence, common carrier status for the feeder route, and relied on a Forwarding Note to absolve liability. The trial court decreed the suit, finding delivery and negligence. On appeal, the High Court of Assam affirmed the decree but on different grounds: it held that negligence was not established, but that the appellants were common carriers and therefore liable without proof of negligence; the Forwarding Note did not absolve them. A certificate under Article 133(1)(c) of the Constitution was granted, leading to the Supreme Court appeal. The principal legal issue was whether the appellants were common carriers for the carriage from Dillibari Ghat to Calcutta, given that Dillibari Ghat was not on their regular steamer route and there was no public notice for that feeder service. Appellants argued that common carrier status on the main route did not extend to the feeder service; they contended that carriage from Dillibari Ghat was not part of their undertaking. Respondent argued that the appellants invariably accepted such carriage requests from all customers, showing a public profession that covered the feeder service, and thus were common carriers. The Supreme Court examined the definition of "common carrier" under Section 2 of the Carriers Act, 1865, and the English common law authorities, including Lane v. Cotton, Ingate v. Christis, and Johnson v. Midland Railway Co. The Court noted that a person becomes a common carrier by publicly professing to carry goods indiscriminately, and this profession may be by public notice or by conduct. It may be limited to particular goods, routes, or points. The mere fact of being a common carrier on one route did not make the carrier a common carrier for every carriage; the public profession for the particular route had to be examined. However, on the evidence, the appellants' own Joint Agent testified that they always tried to give facilities to interior tea gardens and customers whenever they required help, and there was no instance of refusal. The Court inferred that the feeder service from Dillibari Ghat was an integral part of the appellants' main steamer service and that the public profession of the main route attached to the feeder service. The Court also held that absence of fixed rates and profitability of the feeder service were immaterial, and that regularity of the feeder service was not relevant. The Supreme Court refused to interfere with concurrent findings of fact regarding delivery of goods to the appellants. Accordingly, the Court dismissed the appeal and affirmed the High Court's decree, holding the appellants liable as common carriers for the loss.

Headnote

A) Common Carrier - Definition and Test - Public Profession Required - Carriers Act, 1865, Section 2 - Under Section 2, a common carrier denotes a person engaged in transporting for hire property for all persons indiscriminately; status is determined by public profession, which may be by public notice or by actual indiscriminate carrying, and may be limited to particular goods, routes, or points. The Court referred to Lane v. Cotton, Ingate v. Christis, and Johnson v. Midland Railway Co. for English common law principles. Held that being a common carrier on one route does not automatically make one a common carrier for every carriage; the public profession for the particular route must be examined (Paras 5-8).

B) Common Carrier - Feeder Service to Main Route - Public Profession Attached to Feeder Service - Carriers Act, 1865, Section 2 - Although no public notice existed for the feeder route from Dillibari Ghat, the appellants' consistent conduct of complying with all requests to arrange carriage from interior ghats to the steamer station evidenced a public profession. The feeder service was in the nature of a feeder to the main route, and the public profession made in respect of the main route attached to it. Held that absence of fixed rates and profitability of the feeder service were immaterial; regularity of service was not relevant (Paras 9-13).

C) Common Carrier - Liability for Loss - Strict Liability - Carriers Act, 1865, Section 2 - Once the defendants were held to be common carriers for the carriage from Dillibari Ghat, the question of negligence became irrelevant. The High Court's finding that negligence was not established did not absolve the appellants. The terms of the Forwarding Note did not absolve them either. Held that the defendants were liable for the loss of 120 chests of tea as common carriers, and the decree was affirmed (Paras 2, 14).

D) Appellate Review - Concurrent Findings of Fact - Non-Interference - Constitution of India, Article 133(1)(c) - The Supreme Court declined to re-examine the concurrent findings of the trial court and High Court that the plaintiff delivered the tea chests to the defendants at Dillibari Ghat, as there was no reason to depart from the established practice. It also declined to interfere with the High Court's finding that negligence was not proved. Held that concurrent findings of fact should not be disturbed unless perverse (Paras 1-4).

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Issue of Consideration

Whether the appellants were common carriers for carriage of goods from Dillibari Ghat to Calcutta, given that Dillibari Ghat was not on their regular steamer route and there was no public notice for that feeder service; whether the terms of the Forwarding Note absolved the defendants from liability; whether the concurrent finding of delivery of goods to defendants should be interfered with

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Final Decision

The Supreme Court dismissed the appeal and affirmed the High Court's decree. It held that the appellants were common carriers for the carriage of goods from Dillibari Ghat to Calcutta, as the feeder service was an integral part of their public profession and they had consistently accepted such carriage from all customers. Consequently, their liability for the loss of the 120 chests of tea was strict and did not depend on proof of negligence. The decree for Rs. 1,6,224-12-0 in favor of the respondent was upheld.

Law Points

  • A common carrier's status depends on public profession
  • which may be by public notice or conduct
  • profession may be limited to particular goods or routes
  • feeder service to main route can be covered by same public profession
  • absence of fixed rates and profit irrelevant
  • common carrier liability is strict irrespective of negligence
  • concurrent findings of fact not interfered with
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Case Details

1961 LawText (SC) (05) 4

Civil Appeal No. 401 of 1957

1961-05-05

K.C. Das Gupta, P.B. Gajendragadkar, K.N. Wanchoo

1962 AIR 1276, 1962 SCR (2) 802

D. N. Mukherjee, B. Sen, P. K. Chatterjee, P. K. Bose

The River Steam Navigation Co., Ltd.

Shyam Sundar Tea Co., Ltd.

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Nature of Litigation

Civil suit for compensation for loss of goods in transit by a steamer company and its feeder boat service.

Remedy Sought

Plaintiff sought recovery of Rs. 1,6,224-12-0 as compensation for loss of 120 chests of tea; defendants/appellants sought reversal of High Court decree and dismissal of suit.

Filing Reason

The plaintiff alleged that defendants, as common carriers, received 120 chests of tea at Dillibari Ghat for carriage to Calcutta, but the boat sank causing loss, due to defendants' negligence and/or their strict liability as common carriers.

Previous Decisions

Trial court decreed suit holding defendants liable on grounds of negligence and delivery; High Court of Assam affirmed decree but held negligence not proved and defendants liable as common carriers; certificate under Article 133(1)(c) of Constitution granted for appeal to Supreme Court.

Issues

Whether the defendants were common carriers for carriage of goods from Dillibari Ghat to Calcutta, despite no public notice for that route Whether the terms of the Forwarding Note absolved the defendants from liability Whether the concurrent finding of delivery of goods to defendants should be interfered with

Submissions/Arguments

Appellants argued that they were not common carriers for the feeder service from Dillibari Ghat, as that route was not part of their public steamer service and no public notice existed; they also denied delivery and negligence, and relied on the Forwarding Note to absolve liability. Respondent contended that the defendants received the goods at Dillibari Ghat as common carriers, that their public profession extended to the feeder service because they invariably accepted such carriage from all customers, and therefore they were liable for the loss irrespective of negligence; the Forwarding Note did not absolve them.

Ratio Decidendi

A common carrier is one who publicly professes to carry goods indiscriminately, either by public notice or by conduct; such profession may be limited to particular goods or routes. When a carrier holds itself out as a common carrier on a main route and consistently provides a feeder service from tributary points as part of that service, accepting goods from all customers indiscriminately, the public profession of the main route attaches to the feeder service, making the carrier a common carrier for the entire carriage. Absence of fixed rates and profitability of the feeder service are immaterial. Once common carrier status is established, liability for loss of goods is strict and independent of negligence.

Judgment Excerpts

Common carrier denotes a person, other than the Government, engaged in the business of transporting for hire property from place to place, by land or inland navigation, for all persons indiscriminately. Everybody who undertakes to carry for anyone who asks him, is a common carrier. The criterion is, whether he carries for particular persons only, or whether he carries for everyone. A person may profess to carry a particular description of goods only, for instance, cattle or dry goods, in which case he could not be compelled to carry any other kind of goods; or he may limit his obligation to carrying from one place to another... It is of no consequence that the feeder service yielded no profits. Nor was regularity or otherwise of the feeder service a relevant consideration.

Procedural History

Suit filed in Subordinate Judge, Upper Assam Districts; decree for plaintiff; first appeal to High Court of Assam; High Court affirmed decree with modified reasoning; certificate under Article 133(1)(c) of Constitution granted; appeal to Supreme Court.

Acts & Sections

  • Carriers Act, 1865: Section 2
  • Constitution of India: Article 133(1)(c)
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